Direct Petrol Purchases Planned By Marketers At Dangote Refinery

Direct Petrol Purchases Planned By Marketers At Dangote Refinery

Oil marketers in Nigeria are aiming to establish direct purchasing arrangements with the Dangote Petroleum Refinery for Premium Motor Spirit (PMS), commonly known as petrol, rather than sourcing it through the Nigerian National Petroleum Company Limited (NNPC)……..CONTINUE READING

Representatives from the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria have initiated efforts to enable direct purchases from the $20 billion refinery, which is currently supplied solely by the NNPC. This move comes in response to calls from the Nigerian Economic Summit Group for the government to foster competition in the downstream oil sector while supporting the growth of the Dangote refinery.

IPMAN officials view the NNPC as a competitor in the market and are working to arrange a meeting with Alhaji Aliko Dangote or other management members of the refinery. While no specific date has been set for this meeting, IPMAN leaders stress the importance of establishing direct purchasing options from the refinery rather than going through another marketer.

According to Terlumun James, IPMAN’s Secretary, the association is cautious about publicly discussing business negotiations. However, he noted that once a deal is finalized, the details will be shared. He emphasized that IPMAN, comprised of serious business professionals, aims to improve product availability for consumers and foster a productive relationship with the Dangote refinery.

James acknowledged the association’s significant presence in the market, stating, “If someone has something to sell, why not deal directly with them?” He pointed out that IPMAN operates the majority of filling stations in the country.

Similarly, IPMAN spokesperson Ukadike Chinedu emphasized the need for a direct meeting with Dangote to discuss mutual interests and the welfare of marketers. He stated that the current focus is on establishing a willing-buyer, willing-seller dynamic in the market, which aligns with the principles of deregulation.

Chinedu reiterated that while they prefer to buy directly from Dangote, they will continue to source PMS from other suppliers, including the NNPC, if necessary.

Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, highlighted that direct access to PMS from the Dangote refinery would enhance competition in the market, benefitting the downstream sector. He noted that ongoing discussions with Dangote officials aim for a mutually beneficial arrangement.

Currently, only members of the Major Energies Marketers Association of Nigeria (MEMAN) are lifting PMS from the Dangote refinery. Reports indicate that over 50 million liters of petrol were taken from the facility within the past week, following its operational commencement on September 15. MEMAN Chairman Huub Stokman confirmed the loading of PMS but did not clarify whether the purchases were made directly from Dangote or through the NNPC.

Dr. Tayo Adeloju, CEO of the Nigerian Economic Summit Group, called for increased competition in the downstream oil sector while emphasizing the need for government support for the Dangote refinery. He pointed out the importance of creating multiple operators in the market to mitigate monopolistic tendencies and reiterated the government’s commitment to aiding Dangote’s efforts in producing more affordable PMS.